MUI - CEF Weekly Review: Are Discounts Good Or Bad?

2024-05-18 20:00:00 ET

Summary

• We review CEF market valuation and performance through the second week of May and highlight recent market action.
• CEFs had a strong week, with all sector NAVs moving higher, particularly MLPs and Utilities.
• CEF activists criticize wide discounts, but discounts can also provide implicit leverage and offset management fees.
• We highlight the completed First Trust MLP CEF mergers.

Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund ("CEF") market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be driving markets or that investors ought to be mindful of....

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